Offshore schemes 100% prepayment

The ever-increasing tax pressure on businesses by the state is the reason why business organizations actively taking steps to tax optimization. Currently, the use of offshore schemes is probably the most effective of the legitimate methods to reduce the tax burden.

Very popular with the business community enjoys absolute payment scheme, which involves offshore company and a resident. The principle of operation of the scheme is very simple and consists in the introduction of the company resident in a contractual relationship with an offshore company. One of the conditions of the contract for the supply of raw materials, goods or services is a listing of payment in full. After the transfer of funds no further movement is not performed under the contract, and the offshore company is a debtor company, resident.

The next stage of the scheme is to address resident company in court for improper performance of the contract on the part of the offshore partner company. It is quite natural that the court decides in favor of debt collection, but no public authority does not have sufficient authority to fulfill the requirement. Thus, a write-off, which may be included in the cost of a resident company and reduces the gross taxable income. In turn, the accounts of offshore companies accumulated capital that can be used in international activities and are not subject to fees and taxes.